Eva Perón’s farewell song from “Evita” comes to mind as the Office of Federal Contract Compliance Programs (OFCCP or Agency) loses its authority and prepares to take its final bow. Aligning with the Administration’s efforts to dissolve the agency, OFCCP has continued to send notices to federal contractors.
Beginning on October 29, 2025, covered employers in Massachusetts are required to disclose the minimum and maximum amount of compensation that an employer reasonably and in good faith expects to pay for a particular and specific position. Disclosure is required in external job postings, to employees who request such information, and to internal job candidates.
The Massachusetts legislature passed the Massachusetts Noncompetition Agreement Act (MNAA) in 2018, culminating a longstanding effort to balance employers’ rights to protect legitimate business interests—such as trade secrets, goodwill, and proprietary information—against employees’ rights to pursue future job opportunities. The law imposes restrictions on the use of noncompetition agreements entered on or after October 1, 2018, with employees who work or reside in Massachusetts for at least 30 days prior to the termination of employment. On June 13, 2025, in Miele v. Foundation Medicine, Inc., the state Supreme Judicial Court issued a unanimous decision that narrows the potential scope of the MNAA’s definition of noncompetition agreements and preserves for employers the ability to protect one of their most valuable assets, their employees.
The Equal Employment Opportunity Commission (EEOC) and the Department of Labor released their 2026 Congressional Budget Justifications (CBJ) on May 30, 2025, providing valuable information related to the EEOC’s enforcement intentions and the future of the Office of Federal Contract Compliance Programs (OFCCP). A CBJ is the annual budget justification materials of a federal agency or a component of a federal agency that are submitted in conjunction with the President’s annual budget submission. The CBJ provides a detailed description of each program and information about how the agency will use funds, including increases and decreases in spending. The EEOC CBJ identifies four enforcement priorities and anticipated investigations into systemic intentional discrimination using the pattern or practice method of proof. Additionally, the EEOC CBJ and the Department of Labor’s Budget in Brief confirm that the OFCCP will be extinguished with its remaining two programs distributed to the EEOC and the Veterans Employment Training Service.
On March 19, 2025, the U.S. Department of Justice (DOJ) Office of Public Affairs issued a press release announcing two technical assistance documents jointly released by the U.S. Equal Employment Opportunity Commission (EEOC) and the DOJ. The stated purpose of the technical assistance is to encourage whistleblowers to file discrimination charges with the EEOC relating to unlawful diversity, equity, and inclusion (DEI) programs or practices or, in the case of state and local government employees, with the Department of Justice. It provides employees with instructions on how and where to file a claim of DEI related discrimination, along with descriptions of the types of DEI-related programs and activities that may constitute unlawful DEI under the current Administration’s policies. For employers, the technical guidance offers insight into the types of DEI activities that will be targeted by the Administration.
On June 29, 2023, in a 6-3 decision authored by Chief Justice Roberts, Students for Fair Admissions, Inc. v. President and Fellows of Harvard College, the U.S. Supreme Court (“Court” or “Supreme Court”) held that college and university race-conscious admission decisions at Harvard University and the University of North Carolina violate the Equal Protection Clause of the 14th Amendment (“the Harvard-UNC Decision”). The specifics of the race-conscious admissions process used by these higher education institutions and the Supreme Court’s opinion is more fully discussed in Husch Blackwell’s recent post, Supreme Court Prohibits Consideration of Race in College Admissions. The majority and concurring opinions, though, have prompted speculation about the decision’s potential impact on federal contractors subject to affirmative action obligations to provide equal employment opportunities to minorities and women under Executive Order 11246 as well as on employers that have voluntarily adopted diversity, equity, and inclusion (DEI) initiatives. While the Harvard-UNC Decision addressed racial preferences as opposed to affirmative action to ensure equal employment opportunities, the decision provides federal contractors and private employers with some guideposts for lawful implementation of affirmative action and DEI practices.
Veteran Hiring Benchmark Decreased to 5.4%
OFCCP released the national annual veteran hiring benchmark effective March 31, 2023, which measures the national percentage of veterans in the civilian labor force. Federal contractors are required to compare their percentage of hires who are protected veterans in each establishment on a facility-wide basis to the annual veteran hiring benchmark to measure the effectiveness of outreach and recruitment of veterans for employment. The national annual veteran hiring benchmark was decreased from 5.5% to 5.4% as of March 31, 2023. If a federal contractor has elected to calculate an individualized hiring benchmark using state-level availability of veterans, OFCCP has also updated state-level availability data.
Husch Blackwell attorney Tracey O’Brien has posted about the March 31 OFCCP recission of the Trump administration’s Final Rule, Implementing Legal Requirements Regarding the Equal Opportunity Clause’s Religious Exemption. The OFCCP refers to this recission as a return to “longstanding policy in place for more than 17 years to determine applicability of the religious
The Office of Federal Contract Compliance Programs (OFCCP) has made several announcements, including Directives, Notices, and Proposals in their quest to embark on initiatives that significantly impact federal contractors’ affirmative action obligations. These changes contemplate substantive changes to regulations and existing interpretations of the regulations but are cloaked in terminology such as “guidance” and a proposal to OMB to renew data collection. Many of these initiatives obligate regulated parties to undertake additional significant compliance burdens under the threat of enforcement actions. This blog post, part 1, will discuss two of the changes and the resulting challenges faced by federal contractors: 1) OFCCP’s new interpretation of federal contractors’ obligation to evaluate compensation systems as described in Directive 2022-01 and 2022-01 Revision 1, and 2) the contractor portal. Other changes will be addressed in Part 2 of this series.
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